BILL ANALYSIS
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THIRD READING
Bill No: SCA 8
Author: Maldonado (R)
Amended: 2/19/09
Vote: 27
WITHOUT REFERENCE TO COMMITTEE OR FILE
SUBJECT : State officer: salary increases
SOURCE : Author
DIGEST : This Constitutional Amendment prohibits the
California Citizens Compensation Commission from adopting
in a fiscal year a resolution which increases the salary of
Members of the Legislature or other state officers if the
Department of Finance has determined, based on General Fund
revenues and expenditures, that there exists an operating
deficit in that fiscal year. As a matter of clarification,
this amendment also specifies that the Commission may
adjust the salaries and benefits of these officials by
increasing, decreasing, or maintaining them for a
particular fiscal year.
ANALYSIS : Existing law directs the California Citizens
Compensation Commission to establish the annual salary and
the medical, dental, insurance, and other similar benefits
for Members of the Legislature, Governor, Lieutenant
Governor, Attorney General, Secretary of State, Controller,
Treasurer, Insurance Commissioner, Superintendent of Public
Instruction, and members of the Board of Equalization.
CONTINUED
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Existing law does not require the Commission to take the
state's overall fiscal "health" into consideration when
establishing these annual salaries and benefits.
Existing law provides that in establishing or adjusting the
annual salary and benefits, the Commission must consider
the following:
A. The amount of time directly or indirectly
related to the performance of the duties,
functions, and services of a state officer.
B. The annual salary and benefits for other elected
and appointed officers and officials in California
with comparable responsibilities, the judiciary,
and, to the extent feasible, the private sector,
with the understanding that state officers do not
receive compensation at the same levels as
individuals in the private sector with comparable
experience and responsibilities.
C. The responsibility and scope of authority of the
entity in which the state officer serves.
SCA 8 prohibits the Commission from increasing the salary
of any state officer if the Legislative Analyst has
determined, based on General Fund revenues and
expenditures, that there exists an operating deficit in
that fiscal year. SCA 8 also clarifies that the Commission
may adjust the salaries and benefits of state officials by
increasing, decreasing, or maintaining them for a specific
fiscal year.
Background
The California Citizens Compensation Commission was created
by Proposition 112, which was placed on the ballot by the
Legislature and approved by the voters in June of 1990.
Proposition 112 also prohibited honoraria and limited gifts
for elected state officers.
The Commission consists of seven members, all of which are
appointed by the Governor for overlapping six-year terms,
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with the following background requirements: (1) an
executive of a major corporation incorporated in
California; (2) a small-business owner; (3) two officers
or members of a labor organization; (4) a person with
expertise in compensation (i.e. an economist, market
researcher or personnel manager); (5) a member of a
non-profit public interest organization; (6) person who is
representative of the general population (i.e. a retiree, a
homemaker or a person of median income).
The Commissioners must meet by June 30 of each year to
adjust the salaries and benefits for all elected state
officers, to be effective on a December-to-December basis.
The Commission does not decide per diem. The California
Victim Compensation and Government Claims Board (formerly
known as the Board of Control) sets per diem. The
Commission also does not have jurisdiction over retirement
benefits. The California Public Employees Retirement
System administers the retirement benefits for elected
State officers who still receive them. Under Proposition
140 of 1990, members entering the Legislature on or after
1990 do not receive State retirement benefits.
The Department of Personnel Administration's website listed
the following summary of recent Commission actions:
A. On April 12, 2001, the Commission met and voted
not to change salaries and benefits.
B. On March 14, 2002, the Commission met and voted
not to change salaries and benefits.
C. On June 30, 2003, the Commission met and voted
not to change salaries and benefits.
D. On May 21, 2004, the Commission met and voted
not to change salaries and benefits.
E. On May 23, 2005, the Commission met and voted
to increase legislators' salaries 12 percent.
F. On June 23, 2006, the Commission met and voted
to increase the salaries for Governor, Lt.
Governor, Attorney General, Secretary of State,
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Controller, Treasurer, Superintendent of Public
Instruction, Insurance Commissioner, and Board of
Equalization members by 18 percent. The
Commission voted to increase salaries for all
members of the Legislature by two percent.
G. On June 18, 2007, the Commission met and voted
to provide a five percent salary increase for the
Attorney General and Superintendent of Public
Instruction and a two and three-quarter percent
increase for all other offices listed.
H. On April 22, 2008, the Commission met but did
not vote. The Commission decided to meet again
before June 30 to vote on changes to salaries and
benefits, if any.
A similar amendment was SCA 23 (Maldonado), which failed
passage in the Senate Election, Reapportionment and
Constitutional Amendment Committee.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
DLW:do 2/18/09 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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